Cost Push Drives Indian Major's Second July PVC Hike

A major Indian PVC producer has increased domestic prices for the second time in July, driven by escalating feedstock costs. This move is part of a broader trend affecting the polymer market, where prices for polypropylene, PVC, and polyethylene have surged significantly due to rising crude-linked feedstock expenses.

According to industry reports, input costs for plastic manufacturers have risen by 50 to 60 percent, with PVC prices alone increasing by approximately Rs 30 per kg in March and nearly Rs 40 per kg in 2026. This price escalation is impacting sectors heavily reliant on plastic, including fast-moving consumer goods, automotive, construction, and agriculture.

The Gujarat State Plastic Manufacturers Association noted polymer price increases of ₹18–32/kg across various products, highlighting the widespread nature of these cost pressures. As a result, companies are facing tough decisions on whether to pass these costs onto consumers or absorb them, potentially squeezing margins.

With India consuming over 22 million tonnes of plastic annually, the ongoing rise in polymer prices is expected to have a significant impact on the economy. The packaging and FMCG sectors, which account for about 40% of plastic usage, are particularly vulnerable to these cost increases.